Tata Business Cycle Fund
Direct · GrowthAI Summary
Tata Business Cycle Fund has delivered strong alpha versus the NIFTY 50 across all long-term windows, with 3Y and 5Y lump-sum CAGRs of 14.66% and 15.7% against benchmark returns of 7.75% and 7.83%. Its SIP XIRR of 19.81% over 3Y beats the 1Y figure of 10.51%, though the 1Y XIRR trails the category average of 14.1%. Over 5Y, the fund's 14.16% XIRR also lags the category average of 16.95%, suggesting recent performance has cooled relative to peers.
The fund shows a favorable downside profile with downside capture below 91% across all windows while upside capture remains at or above 100%, indicating it falls less than the benchmark in weak markets. The Calmar ratio is healthy at 1.05 over 3Y, though it weakens to 0.78 over 5Y. Two drawdown events exceeding 10% have occurred, with the maximum drawdown lasting 157 days, so meaningful interim losses are possible.
The portfolio is well diversified across 56 stocks, with the top holding (Reliance Industries) at just 4.73% and the top ten totaling roughly 30.6% of NAV. Sector exposure is spread across Banks (12%), Finance (8.4%), Healthcare Services (7.5%), Power (6.6%), and Cement (6.5%), consistent with a business-cycle rotation approach. Holdings span cyclicals like steel, construction, and industrials alongside defensives such as healthcare services.
The fund's 3Y SIP XIRR of 19.81% comfortably beats the category average of 16.82%, but its 5Y XIRR of 14.16% trails the category's 16.95%, indicating outperformance in the recent period but underperformance over longer horizons. Calendar-year returns have been uneven, ranging from 35.58% in 2023 to just 1.84% in 2025, reflecting the cyclical nature of the strategy. Consistency versus thematic peers is moderate, with strong recent years offset by weak ones.
This fund suits investors with high risk tolerance and a horizon of at least 5-7 years, given the volatility inherent in sectoral/thematic and cyclical strategies. It should form a satellite portion of a portfolio rather than a core holding, ideally through SIPs to smooth entry points. Investors should be prepared for extended flat or negative stretches, as seen in 2025's 1.84% return.
- Consistent positive alpha versus NIFTY 50 across all windows, including 7.91% over 5Y
- Downside capture below 91% in all measured periods, cushioning losses in weak markets
- Well-diversified 56-stock portfolio with no single holding above 4.73% of NAV
- 1Y and 5Y SIP XIRR trail category averages (10.51% vs 14.1% and 14.16% vs 16.95%)
- Highly uneven calendar-year returns, with 2025 and 2026 returns below 2%
Generated on 11-09-2026, 3:17 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.70 L | 19.3% | -23.6% | 63.6% |
| 3 Years | ₹36.00 L | ₹45.61 L | 18.6% | 0.4% | 38.9% |
| 5 Years | ₹60.00 L | ₹84.68 L | 14.2% | 13.6% | 14.9% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 19.3% | 14.4% | 14.1% | +4.8% |
| 3 Years | 18.6% | 11.1% | 16.8% | +7.4% |
| 5 Years | 14.2% | 10.4% | 16.9% | +3.7% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 18.9% | 11.5% | -10.2% | 58.5% | 0.66 | 3.17 | 88% | — | — |
| 3 Years | 21.0% | 20.2% | 13.8% | 28.2% | 3.96 | — | 100% | — | — |
| 5 Years | 15.7% | 15.7% | 15.6% | 15.8% | 109.75 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +6.92 | 1.01 | 101.6% | 91.8% | 3.9% | -2.9% |
| 3 Years | +6.91 | 1.00 | 102.6% | 93.9% | 14.7% | 7.8% |
| 5 Years | +7.91 | 0.97 | 100.4% | 90.9% | 15.7% | 7.8% |
| 7 Years | +5.25 | 0.97 | 100.0% | 90.9% | 11.0% | 5.7% |
| 10 Years | +3.53 | 0.97 | 100.0% | 90.9% | 7.6% | 4.0% |
| 12 Years | +2.88 | 0.97 | 100.0% | 90.9% | 6.3% | 3.3% |
| 15 Years | +2.25 | 0.97 | 100.0% | 90.9% | 5.0% | 2.6% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | RELIANCE INDUSTRIES LTD | 4.73% |
| 2 | METROPOLIS HEALTHCARE LTD | 4.23% |
| 3 | AXIS BANK LTD | 3.92% |
| 4 | JINDAL STEEL LTD | 3.31% |
| 5 | LARSEN & TOUBRO LTD | 3.14% |
| 6 | HDFC BANK LTD | 3.09% |
| 7 | L&T FINANCE LTD | 3.02% |
| 8 | DELHIVERY LTD | 2.90% |
| 9 | PB FINTECH LTD | 2.65% |
| 10 | CUMMINS INDIA LTD | 2.57% |